Saudi Arabia’s General Authority of Civil Aviation (GACA) has officially granted an Air Operator Certificate (AOC) to a new low-cost carrier based in Dammam, Eastern Region of Saudi Arabia. The carrier, announced as Air Arabia Alliance in 2025, is set to operate domestic and international flights from King Fahd International Airport following successful safety, security, and operational checks.
The new airline is part of GACA’s efforts to expand the aviation sector and diversify revenue sources as outlined in Saudi Arabia’s Vision 2030. It was selected through a public competition, with Air Arabia Alliance being awarded the contract for its competitive proposal. The airline will operate an all-Airbus fleet, primarily Airbus A320-family jets, with plans to scale up to 45 aircraft to serve over 24 domestic and 57 international destinations, connecting nearly 10 million passengers annually.
Alignment with Vision 2030 and Economic Goals
The launch of the carrier aims to support Saudi Arabia's strategic objective of serving over 300 million passengers annually by 2030. It is projected to create more than 2,400 direct jobs and bolster the tourism industry in the Eastern Province of Dammam. During the announcement, GACA President Abdulaziz Al-Duailej emphasized the role of this initiative in advancing the kingdom's status as a global aviation hub.
With a home base at King Fahd International Airport, the airline is initially focusing on connecting Dammam to Jeddah, Riyadh, and Medinah, with plans to expand to 24 domestic and 57 international destinations. Industry experts highlight that the airline's base affords operational advantages over other local carriers serving multiple city networks, and it will benefit from the expertise of Air Arabia, a well-established Gulf low-cost carrier.
Market Competition and Prospects
Saudi Arabia's aviation market is rapidly evolving, with several new entrants including Riyadh Air, Saudia, flynas, and flyadeal. The new LCC will join this competitive landscape, bringing increased capacity and connectivity. Despite geopolitical tensions and regional security risks affecting airspace operations, the airline’s strategic location at Dammam is expected to enhance Gulf connectivity and help meet ambitious passenger growth targets.
Overall, the establishment of Air Arabia Alliance signifies a significant step in Saudi Arabia’s aviation expansion, contributing to the kingdom’s economic diversification and tourism development plans.
